The Association of Bureau De Change Operators of Nigeria (ABCON) on Tuesday hailed the Central Bank of Nigeria (CBN) on its decision to stop third parties from buying foreign exchange through form M.
Alhaji Aminu Gwadabe, President, ABCON, said on Tuesday that the decision of the Apex bank would make currency manipulation difficult.
“This will in effect address the issue of rent seeking, round tripping and vulnerability to money laundering.
” It is part of the central bank’s resilience and sound control in fighting financial crime in a global pandemic.
” It is apt and timely,” Gwadabe said.
He said that the decision would address frivolous demands and spikes in the market.
The CBN had on Monday issued a circular saying it would no longer approve payment of foreign exchange to form M applicants who do so through a company and agent.
“Authorized Dealers are hereby directed to desist from opening of Form M whose payment are routed through a buying company/agent or any other third parties,” the CBN said.
The apex bank explained that its decision was based on the need to “ensure prudent use of our foreign exchange resources and eliminate incidences of over invoicing, transfer pricing, double handling charges, and avoidable costs that are ultimately passed to the average Nigerian consumers.”
